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Iraqi News Tuesday AM 12-22-20

TLM724 Administrator BondLady’s Corner

Winners Of Protesters Are Demanding The Central Bank To Reverse The Decision To Raise The Currency Exchange Rate

Hundreds of merchants and businessmen gathered in front of the Central Bank building in Hafez Al-Qadi, in the center of the capital, Baghdad, today, Tuesday, December 22, 2020, in protest against the decision of the rise in the exchange rate of the dollar and the current financial crisis.

The protesters called on the central bank management to reverse the decision to raise the currency exchange rate and to find alternative financial solutions, due to the impact of earnings, traders, business interruption and confusion in local markets.  Dozens of health professionals in the governorate of Maysan organized a pause in front of Al-Zahrawi Hospital in the center of the governorate to reject the government’s recent decision to raise the dollar exchange rate.

A group of them told journalists that “this stance comes against the government’s recent decision to raise the exchange rate of the dollar,” noting that “reducing the value of the dinar is an economic blockade on the poor and those with limited income.”    https://www.radionawa.com/all-detail.aspx?jimare=22792

Representatives: We Are With The Iraqi People … And Activists: Hold An Emergency Session And Annul The Decisions Of The Minister Of Finance And The Central Bank

Follow-up Tuesday, December 22, 2020 04:24 PM  Iraqi activists demanded that members of Parliament hold an emergency session of Parliament, and cancel the decisions of Finance Minister Ali Allawi and the Central Bank of Iraq to reduce the value of the Iraqi dinar.

Activists emphasized that if members of parliament say they are with the Iraqi people and their concerns, then they should call for an emergency session, and cancel the decisions of the Minister of Finance and the Central Bank of Iraq.

They indicated that the Iraqi citizen will enter the tunnel of high prices and put pressure on the citizen’s shoulders with the high prices and all commodities. Save the Iraqi citizen from added poverty.

Activists explained that since 2003, all governments and successive parliaments have been fighting the Iraqi people, despite the fact that they are supposed to protect them from militias and the obscene price tag.

Activists indicated that the decrease in the monetary value of the Iraqi dinar will be the victim of the simple citizen who, as usual, is the one who carries the worries and mistakes of the governments.

Activists emphasized that the poor of the Iraqi people live underground and in camps, and suffer most, while presidents and officials live in luxurious palaces.

For their part, a number of deputies confirmed the existence of a vigorous parliamentary move to oblige the government not to raise the price of the dollar in the local markets and to resort to other methods to overcome the budget deficit, pointing out that the moves would host executives and dismiss the negligent and starving people.

A member of the National Approach bloc, MP Hussein Ali, said in a press statement that the government has failed to find solutions and remedies for the current financial crisis, and it is likely that there is acceptance of the political blocs that came to the government on the executive authority’s moves to raise prices.

While the MP for the Alliance of Forces, Raad Al-Dahlaki, confirmed the existence of parliamentary moves to dismiss the Minister of Finance, pointing out that the Prime Minister is demanding the dismissal of a finance minister who has gone through the history of Iraq, after the decisions he made regarding prices.

For its part, a member of the Economic Committee, Nada Shaker, explained that the decisions of the Minister of Finance are wrong and will stand against the interest of the citizen, so it is necessary to correct the situation and avoid such decisions that make the citizen the first victim.

The ” Baghdad Post ” monitors the reactions of activists on social networking sites calling for an emergency session of Parliament to cancel the decision to reduce the Iraqi dinar:

An account, “@alialbaher,” said, “If the Iraqi parliament says that it is with the Iraqi people and their concerns, let them call for an emergency session and cancel the decisions of the Minister of Finance and the Central Bank of Iraq, the Iraqi citizen, he will enter the high-cost tunnel and put pressure on the citizen’s shoulders by raising prices and all commodities. Save the citizen Iraqi people from added poverty. ”

He added, an account, “@ tj2Lby68YehLKk1”, “The state of its government fights its people! The decrease in the monetary value of the Iraqi dinar will be the citizen’s victim.”

And the account continued, “@ muayad01705931”, “The people are dead of hunger. Are these luxurious mansions for officials halal or forbidden?”   LINK

The Judiciary Issues A Circular Against Foreign Currency Traders And Monopolists Of Goods And Commodities

Editing date: 12/22/2020 18:38 • 14 times read   [Baghdad-Where]   The Supreme Judicial Council directed, on Tuesday, uncles issued by all investigation courts to take legal measures against everyone who caused damage to the national economy, whether from foreign currency dealers or monopolistic traders of goods, food commodities and essential commodities that citizens need daily.

The council requested the Ministry of the Interior to “instruct the competent police directorates to conduct inspection tours of wholesale stores and places of foreign currency sale to catch those who violate the law.”

He added, “The investigation court specialized in combating money laundering started several days ago to conduct an investigation regarding the auction of selling foreign currency and violations of the law by some private banks to participate in the auction of selling foreign currency.” Suspect

The competent judge stated that “the investigation reached advanced stages and revealed illegal operations, fraud and fraud to participate in the auction of selling currency and smuggling foreign currency outside the country.” http://www.alliraqnews.com/modules/news/article.php?storyid=105445

The Judiciary Directs To Take Measures Against Those Who Cause Harm To The National Economy

Author: Ahad7 On 12/22/2020 – 5:36 PM 81   On Tuesday, the Supreme Judicial Council directed uncles issued by all investigation courts to take legal measures against everyone who caused damage to the national economy, whether from foreign currency dealers or monopolist merchants of goods, food commodities and essential commodities that citizens need daily.

The council said in a statement that “Al Ahed News” received a copy of it, that “he asked the Ministry of Interior to instruct the competent police directorates to conduct inspection tours of wholesale stores and places of foreign currency sale to arrest those who violate the law.”

It is noteworthy that the investigation court specialized in combating money laundering started several days ago to conduct an investigation regarding the auction of selling foreign currency and violations of some private banks of the law to participate in the auction of selling foreign currency. Selling the currency and smuggling foreign currency out of the country.

https://alahadnews.net/146168/%d8%a7%d9%84%d8%b9%d8%b1%d8%a7%d9%82/%d9%85%d8%ad%d9%84%d9%8a%d8%a7%d8%aa/%d9%85%d8%ad%d9%84%d9%8a%d8%a7%d8%aa-2/

Al-Sadr Warns Of Hidden Hands Targeting The Dinar … And Activists: The Popular Flood Is Coming, And You And Your Movement Will Be The First To Be Removed

Follow-up Tuesday, December 22, 2020 05:05 PM   Iraqi activists launched a violent attack on the leader of the Sadrist movement, Muqtada al – Sadr, after warning that there were hidden hands targeting the Iraqi dinar, and the activists responded that the popular flood is coming and all the corrupt will be removed, on top of them Al-Sadr.

Al- Sadr said in a tweet on his account on “Twitter”, “addressing the merchants,” your brothers and sons who suffer poverty and poverty in this stifling economic crisis through which the enemy wants to humiliate the people, so do not be the back of the enemy and be with your brothers.

Al-Sadr called on merchants to “not be extravagant in prices, especially food, clothing, fuel, and important life matters.”

Al- Sadr warned against internal and external parties targeting the local currency, saying: “Let you know that there are hidden hands from within and without seeking to undermine the people’s bread, currency and strength in order for their countries and parties to benefit.”

Activists responded to al-Sadr. Neither the merchants nor the citizen entered this disaster in order to advise them. You and your corruption have brought us to this disastrous stage. A popular flood is coming, and you and your current will be the first to be dislodged.

The Central Bank of Iraq had decided to reduce the value of the local currency to 1450 dinars per dollar from 1190 dinars.

This decision led to a rise in prices in the local markets, as observers expect that prices will rise at least 20 percent of their value, which will directly affect the poor segment of the population, which constitutes about a third of the Iraqi population.

Activists asked, “Do you expect that Muqtada al – Sadr, who does not have a degree, can bring a scientist with a real certificate to lead and advance Iraq ?” Of course, the answer is that they only bring losers to lead the country.

Activists demanded that Muqtada al – Sadr, if he is serious about reform, as he claims, to return the imports of the Sadrist Economic Authority from the ministries from 2005 to 2018, sell gears, malls and real estate, and contribute to solving the people’s plight in these difficult circumstances.

The ” Baghdad Post ” monitors the reactions of social media activists to Muqtada al-Sadr’s tweet:

An account, “@Mo_Allamy,” said, “Neither merchants nor citizens have any income in this disaster to advise them. You and your corruption have brought us to this catastrophic stage. The popular flood is coming, and you and your movement will be the first to be uprooted.”

An account, “@ ameliraq20,” commented, “A prime minister possesses a law degree from a college that was not recognized internationally and still has an average of 59. Do you expect that Moqtada, who does not have a degree, can bring a world with a real certificate to lead the country. Unfortunately, a country like Iraq is. Led by a failure like you. ”

An account, “@Nabeel_AlHakeem,” responded on the chest, saying: “Will I guide you to a trade that pleases God and saves you from the account on the Day of Resurrection? In these difficult circumstances, do not let the enemies of Iraq insult us, and do not be the back of the enemies.   LINK

Shocking Decline In The Central Bank’s Dollar Sales Today

Time: 12/22/2020 15:03:20  Read: 6,903 times   {Baghdad: Al Furat News} The Central Bank of Iraq’s sales of dollars on Tuesday fell shockingly, falling to 43%.

According to the bank’s daily bulletin on the currency auction, the total sale for the purposes of strengthening the funds abroad {transfers, credits} amounted to 113 million 294 thousand and 784 dollars, and the cash sale amounted to only 200 thousand dollars.

As for the total sales, it was 113 million 494 thousand and 784 dollars.

The total sales of the currency auction yesterday were 207 million and 368 thousand and 67 dollars.

The sale price of the sums transferred to bank accounts abroad was (1460) dinars per dollar, and the cash sale price was (1460) dinars per dollar, in implementation of his decision yesterday to raise the exchange rate.

And the Central Bank of Iraq raised the exchange rate of the dollar against the dinar to 1470 dinars for the public and 1460 dinars for the banks participating in the currency auction.

The decision caused concern and fear among Iraqis, especially employees, from the rise in prices, and had already negatively affected the movement of commercial centers and important markets such as Shorja and Jamila Alwa in Baghdad that seemed almost empty.

Central Bank Governor Mustafa Ghaleb said that the bank “will double the sale of the dollar to exchange companies,” indicating that “the abundance of dollars will make it stable in the market.”

He pointed out that “the Ministry of Finance formally requested an increase in the exchange rate of 1450 dinars to one dollar and we asked for his presence to explain the reasons for raising the value of the dollar,” stressing that “the Iraqi reserve is still in good standing.”   LINK

Central Bank Sales Are Down By More Than 43% In Today’s Auction

The Baghdad Post Tuesday, December 22, 2020 02:53 PM Central  bank    On Tuesday, the Central Bank announced the sale of $ 113 million, with the participation of 22 banks.

The Central Bank of Iraq witnessed during its auction for the sale and purchase of foreign currencies today, a decrease in its sales by 43.5%, to reach 113 million and 494 thousand and 784 dollars covered by the bank at a base exchange rate of 1460 dinars per dollar, compared to last Sunday, when sales reached 200 million and 507 thousand dollars.

The request was distributed by 113 million and 294 thousand and 784 dollars to enhance the funds abroad in the form of transfers and appropriations, while the rest of the 200 thousand dollars was distributed in the form of cash sale that was fully covered by the bank at an exchange rate of 1460 dinars per one dollar. While none of the 22 banks made any offers to sell the dollar in the currency auction.   LINK

A Decrease In The Exchange Rates Of The Dollar

Pratha News Agency121 2020-12-22   The exchange rates of the dollar decreased in the main stock markets and local markets, today, Tuesday (December 22, 2020).

The Kifah Stock Exchange recorded 140,000 dinars against 100 US dollars, while the exchange rates on Monday in the Kifah Stock Exchange recorded 142,500 dinars per 100 dollars.

As for the exchange rate in the local market, it also decreased, as the selling price was: 141,000 dinars per 100 dollars, and the purchase price 139,000 dinars per 100 dollars.

The owners of banking offices attributed the decline in the dollar exchange to the lack of demand and the increase in supply, despite the Central Bank of Iraq fixing the dollar exchange rate at 145 thousand dinars per 100 dollars. http://burathanews.com/arabic/economic/382934

Balance In The Exchange Rate

Tuesday 22nd December 2020  49  Muhammad Sharif Abu Maysam   It is difficult to talk about balance in the exchange rate, unless the elements of the market are complete, as talking about balance necessitates the existence of a market in which tools are integrated and relations are formed according to a large package of laws and a strict executive body, in light of economic activity in which all sectors have a role Large gross domestic product, then we can say that this balance is important to attract investment.

And balance means first recognizing the mechanism of floating the local currency, and this mechanism that takes its absolute form in advanced industrial economies, and is subject to the mechanism of orbiting floatation in emerging economies, requires the existence of real sectors and sectors that support them that contribute in their entirety and significantly to the gross domestic product, and limit the flow of foreign currency to finance Foreign trade, which necessarily leads to a decrease in unemployment rates in the labor market, and contributes to reducing the phenomenon of inflation and price fluctuations.

Hence, we need systematic support for the national private sector, as long as the investment environment remains anxious and not attractive to investment, despite what is said about it being a promising environment.

The mechanism for controlling the stability of the exchange rate is not related to the use of the central bank’s reserves only, without the existence of an active economy capable of meeting the overall demand, as the role of the monetary authorities is reduced in the area of intervention to reduce price fluctuations, or the national currency is exposed to major declines, then The monetary authority injects foreign currency and sells it against the local currency, and when the exchange rate stabilizes, it may buy foreign currencies against the local currency.

This mechanism necessitates stability in the nature of market movement, the regularity of the rhythm of productive activities and the recording of growth rates that enable those in charge of drawing the monetary policy to take decisions in line with the inflows of hard currency into the interior, and compare the costs of locally produced goods with the prices of imported counterparts according to a correlation that protects the local product from the rise The cost of the locally produced unit in terms of the minimum balance between the quantities of imported goods versus their locally produced counterparts, otherwise, leaving the market in favor of aggregate demand without the presence of real economic sectors will give speculators great opportunities to make profits at the expense of the consumer price, which will push up inflation rates.

It creates a further decline in the value of the local currency and cash reserves without leading to monetary stability that contributes to attracting investment.

https://alsabaah.iq/37686/%D8%A7%D9%84%D8%AA%D9%88%D8%A7%D8%B2%D9%86-%D9%81%D9%8A-%D8%B3%D8%B9%D8%B1-%D8%A7%D9%84%D8%B5%D8%B1%D9%81

Representative Economy: A Rise In The Exchange Rate Will Affect The Contracting Sector

Tuesday 22nd December 2020    47  Baghdad: Farah Al-Khafaf    Despite government reassurances regarding future measures to stabilize the market after raising the dollar’s exchange rate against the dinar, markets and many specializations are still unstable, and are dealing with caution with these developments, including contracting and real estate.

The head of the Parliamentary Economic and Investment Committee, Ahmed al-Kanani, confirmed that raising The exchange rate will affect government contracts with the private sector and local companies, especially the contractors segment.

Al-Kinani called for finding appropriate solutions that preserve public money, and ensuring that no damage occurs to the segment of contractors for the sustainability of the development process in coordination with the sectoral authorities and the relevant committees in the House of Representatives.

Al-Kinani indicated that the Economic and Investment Committee is concerned with revitalizing the private sector in accordance with the provisions of Article 94 Second of the Council’s bylaws Representatives.

Last Saturday, the Central Bank decided to amend the foreign currency exchange rate, as follows:

1450 dinars per dollar is the price of buying foreign currency from the Ministry of Finance, 1460 dinars is the price of selling foreign currency to banks, and 1470 dinars is the price of selling foreign currency to citizens. ”However, Central Bank Governor Mustafa Ghaleb. He emphasized that the Ministry of Finance was the one who formally requested an increase in the exchange rate to 1,450 dinars against $ 100, which led to this market turmoil the days.

The governor acknowledged that “the high exchange rate of the dollar has had an impact on the Iraqi market.”

In the same regard, Saad Al-Zaidan, a real estate specialist, said, “The construction and real estate sector will be affected by this rise.”

Al-Zaidan told Al-Sabah: “Most of what goes into the implementation of contracting is imported materials, so costs will rise, and there are previous contracts that were signed with specific amounts, which may result in problems between contractors and the parties that they agreed and signed with.”

Calling for the need to pay attention to this file, especially that some projects reach hundreds of billions of dollars Dinars.

Al-Zaidan warned that “the real estate sector will be affected by the increase in the exchange rate, and by reducing the salaries of employees if approved.”

the last one. As most of the purchases of housing units and construction or building restoration etc. are done by employees, or the monetary mass that is paid to them and most of them are traded in market”.

Noting that “the rental operations will be affected, especially those that depend on the dollar,” calling for the importance of paying attention to these cases and addressing them Soon”.   LINK

Devaluation Serves The National Economy

Tuesday 22nd December 2020  45  Baghdad: Morning   The Iraqi Institute for Economic Reform described the government’s move to reform the Iraqi dinar exchange rate as positive and long overdue for a long time, as the price of the Iraqi dinar over the past period was higher than its real value, causing some damage to the Iraqi economy.

The Institute’s advisor, Dr. Hussain Al-Khaqani, said through a press release that “this reform must be viewed as part of all.

The statement clarified that “the procedure came late, as Iraq became a popular market for the products of several countries such as Iran, Turkey, Egypt and Lebanon, those countries that devalued their currency with the stability of the Iraqi currency exchange rate. Energy for the Iraqi product to compete.

This necessitated keeping pace with these events and reforming the exchange rate in a way that serves the national economy, and that this reform of the Iraqi dinar exchange rate has positive and negative aspects.

He pointed out that “the positive aspects are the creation of a new resource for the public treasury that contributes to narrowing the gap in the budget deficit and enables the financial planner to cover salaries, wages, pensions and social protection salaries on an ongoing basis without resorting to borrowing that includes severe and long-term negative effects, and creating job opportunities in the sector. As a result of limiting imports of cheap goods from neighboring countries, compared to the low exchange rate of the dollar in the local market And reduce the high rates The unemployment”.

The positive aspects are also represented in encouraging investment in various economic sectors and limiting the dumping of imported commodities from abroad as a result of the increase in their prices. This changes the pattern of consumption towards locally produced goods, as well as reducing dependence on oil as the only source of public revenues.

As for the negative aspects, it is represented in creating temporary confusion in the local market as a result of its impact on the prices of imported goods between wholesalers and retailers, and also causes high prices of medicines, goods and services that cannot be compensated for by local production, which requires the state’s intervention in determining the prices of these goods and granting them exemptions from customs duties. To maintain their prices, and reduce the purchasing power of the dinar.

The statement quoted Al-Khaqani as saying that the treatments require a wise plan to bear the groups that have become wealthy and achieve legitimate gains and others the brunt of sacrifices by modifying the upper limit of income tax, a thoughtful return to the inheritance tax, and improving and diversifying the ration card.  LINK

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